SEC calls Algorand a security - thoughts? - page 2.

DeathAngel

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Quote from: OcTradism on April 18, 2023, 06:22:56 AM

My thinking is SEC can attack and call any cryptocurrency as a security but they don't have full rights to do it successfully.

At this stage I think the SEC is not fit for purpose. They are protecting nobody except the $ & big banks interests. How do they protect retail investors, by denying them access to life changing investment opportunities.

The SEC needs disbanding & some kind of other regulatory committee needs to be appointed, people who are in the 21st century, not the 1800’s. There needs to be scope for new technology otherwise the $ will weaken as innovation & adoption of new tech goes abroad.

MIner1448

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The answer to this question depends on many factors, and each investor can have his own opinion. However, if the SEC has designated Algorand a security, it means that they consider the token to be an investment contract and subject to regulation under US securities laws. This may affect the future development of the project, as it may be limited in how it can be used and which markets can trade it.
In any case, this may cause uncertainty in the market, and some investors may decide to sell their tokens to avoid risks. However, other investors may decide to continue holding their tokens as they believe in the project and its potential. It is important to remember that investments in cryptocurrencies are always associated with risks, and each investor must make his own decision based on his knowledge and experience.

IShishkin

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Quote from: JamesDaniel90 on April 18, 2023, 03:22:59 AM

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

I think it's a job of SEC to go after Algorand. I have no doubt Algorand deserves a status of the security.

so98nn

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Algo is based on conversion mechanism where decentralised and traditional currencies can be converted amongst each other. This means it plays huge role in the exchanging of two different type of assets and could give rise to Money laundering as well. Though it is not any basis to think that it’s a security but since it’s involved in the financial system directly it has to be considered that way.

Anyways, if they consider it security then it could get proper regulatory framework. More adoption in the trading system under traditional finances. It’s gonna skyrocket the project with SEC security.

bittraffic

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Gensler is likely involved in insider trading. It was said in the hearing that personally promoted this Algorand. He was really grilled n the hearing and couldn't answer a simple question as to which is the basis for treating a crypto a security or a commodity.

They were already suspecting why regulation was yet not finalized after 12 years of them having watching over crypto markets. I suspect they are waiting for the CBDC before they will really do something.

Emperor of Man

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He has called every cryptocurrency except BTC a security before, so ALGO is not the only one. They have called DASH and a few other projects securities too in their lawsuit against bittrex.

The thing that makes ALGO special is that this guy used to be a fan of ALGO and introduce it as a high tech blockchain before:

https://twitter.com/Leerzeit/status/1459943962647711745

Everything about this guy stinks horribly...

TastyChillySauce00

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I don't even care anymore about it. So much news related to SEC accused so many projects like security. The thing that is actually needed by SEC is to see the project paid fine to the US regulators. I take the lesson from XRP. XRP can leave the problem easily by paying fines but since XRP wanna try to prove that it's not security and it still continues the fight against SEC in court. SEC charges everything rigth now. The accusation toward justin sun has not ended yet but SEC already started to start another case.

goaldigger

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Expect FUD and Panic, try to exit early as much as possible and avoid further loses.
This accusation of SEC will take further as they continue to attack crypto. Are they suing the project developer already or this is their first warning to the public? Well, what we can expect from them maybe this can be the same issue with XRP and other projects being sued by SEC. Not fully familiar about the project but if there’s a SEC issue, I’m out for this.

o48o

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Quote from: JamesDaniel90 on April 18, 2023, 03:22:59 AM

Algorand is one of the altcoins I hold in my portfolio and recently starting buying more while prices are low.

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

Well this isn't just about Algorand, they just got in the middle of Bittrex lawsuit. Algorand was one of the 6 coins, others being: OMG, DASH,TKN,Naga And IHT, and looks like more is coming to that list.

I would like to know the true reason for SEC's decision for this as all i can think of is if the devs of these coins had some illegal marketing tactic that focuses on price growth.
Now all they accomplished was to make Bittrex leave United States. They didn't really leave any alternatives.

https://twitter.com/richiela/status/1641879643497308161/photo/1

Silberman

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Quote from: JamesDaniel90 on April 18, 2023, 03:22:59 AM

Algorand is one of the altcoins I hold in my portfolio and recently starting buying more while prices are low.

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

There is no reason to panic as according to the SEC almost all coins are securities except for bitcoin, now some criticize the SEC for this, and while they do deserve a lot of criticism for a lot of things, in this particular case I think they are right, altcoins at the end of the day have people behind them hiding behind all kind of legal entities, so buying their coin is a form of investment on their company whether those people like to accept it or not, bitcoin is completely different which is why despite the strict guidelines of the SEC it receives a different treatment.

ije07

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The SEC has previously deemed crypto assets to be securities, as was the case with the FTT tokens, and currently, the Algo token is one of the six tokens mentioned by others. Bittrex is the subject of a lawsuit that has an impact on several tokens connected to the exchange. As a result, it would be wiser to monitor developments and, if necessary, remove assets in accordance with SEC standards before it is too late.

jacafbiz

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For Gensler all tokens are Security including Ethereum if he has his way. The only Crypto that is not Security in his opinion is BTC. I will not worry about this IMO, most of these projects invariably end up settling with them out of court. I believe the $XRP case is more significant now than before, if the Ripple team wins its case against SEC that would be a major win for most Crypto tokens. I understand the Ripple team's argument that why Ethereum is not classified as Security and Ripple happens to be.

Captain Corporate

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They call everything a security these days, they do not even look at the coin or the token, they just look if its crypto or not and if it is then they call it a security. I do not know why that makes it any bad though, they can call whatever they want, who cares what SEC says, sure I think Americans who have to trade based on that could care, that is understandable but that doesn't mean that we should all care about it as well, we could totally ignore it. I am not American nor ever been to America, so I could simply keep on ignoring them and do what I do. This is simply just a different way of taxing your trades at this point and has nothing else to do with the current situation or the future.

Yogee

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SEC calling this coin or that token as security sounds like an old news now to be honest. Just consider that they will treat all altcoins except Ethereum as the same so you don't get surprised or worried when that time comes. Anything that had raised funds by coin offerings or token sales to US citizens will most likely be called a security.

electronicash

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Gensler did call all altcoins to be security including ETH and even the stablecoin so it's not surprising anymore when they pronounce Algorand to be one.
but altcoins as Security are classified as not official though. nothing to worry yet.

Gensler is determined to kill crypto but it may change soon because he could be removed from office, there are people from the high place who are pushing back the crypto crackdown.

vv181

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Quote from: OcTradism on April 18, 2023, 06:22:56 AM

My thinking is SEC can attack and call any cryptocurrency as a security but they don't have full rights to do it successfully.

I'm sure they have all the rights.

Quote from: JamesDaniel90 on April 18, 2023, 03:22:59 AM

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

Quote from: OcTradism on April 18, 2023, 06:22:56 AM

If they arbitrarily do such attacks, will they pass Howey test?

The notion that the SEC perceives most altcoin as securities are not recent news. Gary Gensler, the current SEC chairman, also alleged so.

Quote from: https://nymag.com/intelligencer/2023/02/gary-gensler-on-meeting-with-sbf-and-his-crypto-crackdown.html

"Everything other than bitcoin,” Gensler told me, “you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.” In other words, there are people behind these cryptocurrencies using a variety of complex and legally opaque mechanisms, but at the most basic level, they are trying to promote their tokens and entice investors. (Bitcoin, because of its unique history and creation story, is fundamentally different from other crypto projects in this respect.)

What the current case is mainly tied to Bittrex, since what the lawsuit is all about is SEC trying to charge Bittrex as an unregistered security exchange. What they are doing and need is to establish one of the few tokens listed as securities. So ALGO is among other tokens. So, I don't think ALGO is specifically the main highlight here, I see the prices are also hardly affected.

Regarding the lawsuit, it can be seen here: https://www.sec.gov/news/press-release/2023-78

jossiel

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They'll call any project they think as a security and they're unstoppable for that. Anyway, if you do solely believe on the project they're calling it security or not, you'll just stay whatever they say.

Because SEC's move are not going to change and soon, they're going to call other projects as security as well whether it's on your portfolio or not.

OcTradism

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My thinking is SEC can attack and call any cryptocurrency as a security but they don't have full rights to do it successfully.

If they arbitrarily do such attacks, will they pass Howey test?

I believe they will fail with the test and in law suit, they won't win those cases. Commodity, security will not be decided by only SEC. There are other regulatory authorities in the USA. will challenge SEC accusations.

In addition, in long run if more cryptocurrency companies leave the USA. which leads to negative impacts on their economy, regulations will be changed to be softer and more comfortable for cryptocurrency companies as well as to be competitive enough with other countries.

JamesDaniel90

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Algorand is one of the altcoins I hold in my portfolio and recently starting buying more while prices are low.

I Will not panic with the news that came out yesterday with the SEC calling Algorand a security but I will stop buying for a few days or so to see how the market reacts.

Just wondering what everyone's thoughts are on this claim from the SEC?

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